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Abstract

Twin and adoption studies have consistently found that genetic variation is an important source of heterogeneity in economic outcomes such as educational attainment and income. The advent of inexpensive, genome-wide scans is now making it increasingly feasible to directly examine specific genetic variants that predict individual differences. In this paper, we conduct a genome-wide association study (GWAS) of educational achievement. In the first stage, we used data on over 360,000 genetic markers throughout the genome from the Framingham Heart Study, a family-based sample of nearly 8,500 individuals, and found a number of markers with suggestive associations with educational attainment. The most promising variants were significant at the 5⋅10⁻⁷ level. In the second stage, we attempted to replicate the most significant first-stage associations using data from the Rotterdam study, an independent sample of over 9,500 individuals. None of the first-stage associations replicated, suggesting that the first-stage results were false positives. We discuss the challenges that arise when doing inference in genoeconomics research, emphasizing the importance of properly correcting for multiple hypothesis testing and of replicating significant results in independent samples. We also discuss issues of power and sample size. We argue that if proper attention is given to these methodological challenges, the burgeoning field of genoeconomics will add a valuable new dimension to our understanding of heterogeneity in economic outcomes.

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The costs of comprehensively genotyping human subjects have fallen to the point where major funding bodies, even in the social sciences, are beginning to incorporate genetic and biological markers into major social surveys. How, if at all, should economists use and combine molecular genetic and economic data from these surveys? What challenges arise when analyzing genetically informative data? To illustrate, we present results from a "genome-wide association study" of educational attainment. We use a sample of 7,500 individuals from the Framingham Heart Study; our dataset contains over 360,000 genetic markers per person. We get some initially promising results linking genetic markers to educational attainment, but these fail to replicate in a second large sample of 9,500 people from the Rotterdam Study. Unfortunately such failure is typical in molecular genetic studies of this type, so the example is also cautionary. We discuss a number of methodological challenges that face researchers who use molecular genetics to reliably identify genetic associates of economic traits. Our overall assessment is cautiously optimistic: this new data source has potential in economics. But researchers and consumers of the genoeconomic literature should be wary of the pitfalls, most notably the difficulty of doing reliable inference when faced with multiple hypothesis problems on a scale never before encountered in social science.
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The genetic and environmental contributions to educational attainment in Australia are examined using a multiple regression model drawn from the medical research literature. Data from a large sample of Australian twins are analysed. The findings indicate that at least as much as 50 percent and perhaps as much as 65 percent of the variance in educational attainments can be attributed to genetic endowments. It is suggested that only around 25 percent of the variance in educational attainments may be due to environmental factors, though this contribution is shown to be around 40 percent when adjustments for measurement error and assortative mating are made. The high fraction of the observed variation in educational attainments due to genetic differences is consistent with results reported by Heath et al. (Heath, A.C., Berg, K., Eaves, L.J., Solaas, M.H., Corey, L.A., Sundet, J., Magnus, P., Nance, W.E., 1985. Education policy and the heritability of educational attainment. Nature 314(6013), 734–736.), Tambs et al. (Tambs, K., Sundet, J.M., Magnus, P., Berg, K., 1989. Genetic and environmental contributions to the covariance between occupational status, educational attainment and IQ: a study of twins. Behavior Genetics 19(2), 209–222.), Vogler and Fulker (Vogler, G.P., Fulker, D.W., 1983. Familial resemblance for educational attainment. Behavior Genetics 13(4), 341–354.) and Behrman and Taubman (Behrman, J., Taubman, P., 1989. Is schooling mostly in the genes? Nature-nurture decomposition using data on relatives. Journal of Political Economy 97(6), 1425–1446.), suggesting that the finding is robust.
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Economists have argued that obesity may lead to worse labor market outcomes, especially for women. Empirical methods to test this hypothesis have not thus far adequately controlled for the endogeneity of obesity. We use variation in genotype to predict variation in phenotype (obesity). Genetic information from specific genes linked to obesity in the biomedical literature provides strong exogenous variation in the body mass index and thus can be used as instrumental variables. These genes predict swings in weight of between 5 and 20 pounds for persons between five and six feet tall. We use additional genetic information to control for omitted variables correlated with both obesity and labor market outcomes. We analyzed data from the third wave of the Add Health data set, when respondents are in their mid-twenties. Results from our preferred models show no effect of lagged obesity on the probability of employment or on wages, for either men or women. This paper shows the potential of using genetic information in social sciences.
Genes and Social Strati…cation Amsterdam: North-HollandIndividual Di¤erences in Allocation of Funds in the Dictator Game Associated with Length of the Arginine Vasopressin 1a Receptor (AVPR1a) RS3 Promoter Region and Correlation between RS3 Length and Hippocampal mRNA
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Analyzing Genome-Wide Associa-tion Study Data: A Tutorial Using PLINK
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Beware the Chopstick Gene
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Culture and Inequality
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Huntington’s Disease
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Mach 1.0: Rapid Haplotype Reconstruc-tion and Missing Genotype Inference
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A Haplotype Map of the Human GenomeEmpirical Strategies in Labor Economics
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